CLA-2-63:OT:RR:NC:N3:349
Mr. Arnold Eber
FA Ventures LLC
2151 Michelson Drive
Suite 236
Irvine CA 92612
RE: The tariff classification of a cleaning cloth from Korea
Dear Mr. Eber:
In your letters dated June 4, 2015 and July 7, 2015 you requested a ruling on the tariff classification, marking, country of origin and status under the United States-Korea Free Trade Agreement (UKFTA) of a cleaning cloth from Korea. A sample was provided.
The submitted sample is a microfiber cleaning cloth. The cleaning cloth is made from 80 percent polyester and 20 percent polyamide printed knit fabric. It measures approximately 5 ¾ X 7 ½ inches and has pinked edges. You indicate the cloth is suitable for cleaning optical lenses, phones and computer screens.
The applicable subheading for the cleaning cloth will be 6307.10.2030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other made up articles, including dress patterns: Floorcloths, dishcloths, dusters and similar cleaning cloths: Other: Other.” The duty rate will be 5.3 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.
You also requested a country of origin ruling. Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.
Paragraph (c)(1) states, "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As you have not demonstrated in sufficient detail that the subject merchandise meets the definition of wholly obtained or produced in a single country, territory or insular possession, this office is unable to determine if paragraph (c)(1) of Section 102.21 is applicable. Consideration was then given to the next general rule.
Paragraph (c)(2) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:" Paragraph (e) in pertinent part states, The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section:
6307.10: The country of origin of a good classifiable under subheading 6307.10 is the country, territory, or insular possession in which the fabric comprising the good is formed by a fabric-making process.
As the fabric is knitted in Korea, the country of origin is conferred in Korea.
Regarding the status of the cloth under the UKFTA, General Note (GN) 33, HTSUS, sets forth the criteria for determining whether a good is originating under the UKFTA. GN 33(b), HTSUS, (19 U.S.C. § 1202) states that,
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if-
the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both;
the good is produced entirely in the territory of Korea or of the United States or both, and
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or
(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and
satisfies all other applicable requirements of this note and of applicable regulations; or
the good is produced entirely in the territory of Korea or the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.
For the purposes of this note, the term “UKFTA country” refers only to Korea or to the United States.
You state that you believe the goods are “wholly obtained and produced in Korea” and meet preference criterion “A”. However, you have not provided sufficient detail to show that the cloths meet the definition of “wholly obtained or produced entirely in the territory of Korea or the United States, or both” as defined under GN 33(c)(i).
Next, we considered whether the goods met the product specific rule under GN 33(o)/63.4. For goods classified in heading 6307, General Note 33(o)/63.4 requires:
A change to headings 6304 through 6308 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311 or 5401 through 5402, subheadings 5403.33 through 5403.39 or 5403.42 through heading 5408 or headings 5508 through 5516, 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of Korea or the United States, or both.
Your original ruling request stated the cloth was produced and printed in Korea. In a recent e-mail correspondence with your office it was stated “the entire process of creating the cloths is ALL done in South Korea. (Yarns are woven there, fibers originate from there, printing is done there.)” This office finds the sample submitted was knit rather than woven. Additionally, while fabrics may be woven, yarns are generally made from fibers or filaments and considered to be spun or extruded. As a result of your brief details and these inconsistencies, we are unable to rule on the status of the cleaning cloth under the UKFTA.
A request for a ruling on the status of a product under UKFTA must provide sufficient detail to permit proper application of the relevant UKFTA provisions. In this case, we will require additional information in order to issue a ruling concerning the status under UKFTA. If you intend to provide this information in the future for a ruling, please fully address the product specific rule with respect to the cloth. Identify the construction of the cloth and substantiate the article meets the product specific rule above. For instance, specifically state whether the item is made from filament yarns of Chapter 54 or spun yarns from staple fibers of Chapter 55. If filament yarns, please provide the origin of the chemical used and identify where the extrusion process occurred. If the yarns are from staple fibers, please provide the country of origin of the staple fiber. Each material used to create this cloth must be specifically identified and the country of origin stated. Each process and the country where the process was performed must also be stated.
Your letter also included a request for a marking ruling; however, the submitted sample is not marked with its country of origin nor have you provided any information concerning how the product is packed or packaged at time of importation or when sold in the U.S. You have also not stated whom the ultimate purchaser is in the United States. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser.
Additionally, please note that separate Federal Trade Commission marking requirements exist regarding country of origin, fiber content, and other information that must appear on many textile items. You should contact the Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C., 20580, for information on the applicability of these requirements to this item. Information can also be found at the FTC website www.ftc.gov (click on "For Business" and then on "Textile, Wool, Fur").
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kim Wachtel at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division